KUWAIT
Since February 2016
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Nationality/residency requirement for directors or managers
Companies Law No. 1 of 2016
During the establishment process under Companies Law No. 1 of 2016, the manager of a limited liability company can either be a Kuwaiti national or a Gulf Cooperation Council national. The manager can also be a foreign national, but he/she must hold a valid residence in Kuwait. If a foreign national is appointed as a manager, the company will have a temporary licence until he/she transfers his/her residence to the new company, which must be achieved within three months.
Coverage Horizontal
KUWAIT
Since June 2013
Since March 2019
Since March 2019
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Sub-pillar Screening of investment and acquisitions
Law No. 116 of 2013 Regarding the Promotion of Direct Investment in the State of Kuwait
(قانون رقم 116 لسنة 2013 في شأن تشجيع الاستثمار المباشر في دولة الكويت)
Decision No. 329 of 2019 regarding the mechanism for evaluating investment license applications and granting benefits
(قانون رقم 116 لسنة 2013 في شأن تشجيع الاستثمار المباشر في دولة الكويت)
Decision No. 329 of 2019 regarding the mechanism for evaluating investment license applications and granting benefits
The Foreign Direct Investment Law of 2013 established the Kuwait Direct Investment Promotion Authority (KDIPA) to solicit investment proposals, evaluate their potential, and assist foreign investors with licensing. Art. 14 sets forth a licensing scheme for foreign direct investment. The Board of KDIPA examines investment proposals against the criteria, principles and assessment rules established by the Board regarding each of the cases set forth in this law. Investment through the establishment of a new enterprise, a foreign branch, and a regional representative office must go through the licensing scheme (Art. 12).
In 2019, KDIPA issued Decision No. 329 of 2019 regarding the mechanism for evaluating investment license applications and granting benefits. It is reported that, in approving applications from foreign investors seeking full ownership, KDIPA prioritises local job creation, the provision of training and education to Kuwaiti citizens, technology transfer, diversification of national income sources, contribution to exports, support for small- and medium-sized enterprises, and the utilisation of Kuwaiti products and services.
In 2019, KDIPA issued Decision No. 329 of 2019 regarding the mechanism for evaluating investment license applications and granting benefits. It is reported that, in approving applications from foreign investors seeking full ownership, KDIPA prioritises local job creation, the provision of training and education to Kuwaiti citizens, technology transfer, diversification of national income sources, contribution to exports, support for small- and medium-sized enterprises, and the utilisation of Kuwaiti products and services.
Coverage Horizontal
Sources
- https://web.archive.org/web/20220121032233/https://e.kdipa.gov.kw/main/law1162013.pdf
- https://web.archive.org/web/20230503180407/https://kdipa.gov.kw/wp-content/uploads/2021/09/Decision-No.-329-of-2019-1.pdf
- https://web.archive.org/web/20210318105607/https://kw.usembassy.gov/wp-content/uploads/sites/157/2020-Investment-Climate-Statements.pdf
- https://web.archive.org/web/20230126213853/https://www.state.gov/reports/2021-investment-climate-statements/kuwait/
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KOREA
Since July 2001, last amended in July 2018
Since April 2006, last amended in July 2016
Since April 2006, last amended in July 2016
Pillar Online sales and transactions |
Sub-pillar Restrictions on online payments
Regulations on Supervision of Specialized Credit Finance Business
Electronic Finance Transaction Act (전자금융감독규정)
Electronic Finance Transaction Act (전자금융감독규정)
Under the Regulation on Supervision of Credit-Specialized Financial Business, electronic commerce firms operating on a cross-border basis have been prevented from either selling in KRW or storing domestic consumers’ credit card information unless they have registered in Korea as a Payment Gateway (PG) supplier or use a local PG company service for KRW-denominated transactions. In the absence of a PG registration (which requires firms to develop Korea-specific payment systems and customer interfaces and to have a local presence in Korea), foreign electronic commerce sites can only process dollar-denominated transactions for which customers enter their credit card information anew each time, which puts them at a competitive disadvantage as compared to local merchants. However, the Electronic Finance Supervisory Regulations do not impose the registration requirement for subsidiary electronic financial business entities which include PG services. It imposes such a requirement only on electronic financial business entities.
Coverage Payment gateway services and e-commerce
Sources
- https://www.law.go.kr/%EB%B2%95%EB%A0%B9/%EC%A0%84%EC%9E%90%EA%B8%88%EC%9C%B5%EA%B1%B0%EB%9E%98%EB%B2%95
- https://elaw.klri.re.kr/eng_mobile/viewer.do?hseq=44455&type=part&key=8
- https://ustr.gov/sites/default/files/2022%20National%20Trade%20Estimate%20Report%20on%20Foreign%20Trade%20Barriers.pdf
- https://www.legaltimes.co.kr/news/articleView.html?idxno=51645
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KOREA
Since March 2004, as amended in March 2016, last amended in June 2022
Pillar Online sales and transactions |
Sub-pillar Threshold for ‘De Minimis’ rule
Notice of Import Customs Clearance for Express Goods (특송물품 수입통관 사무처리에 관한 고시)
According to Art. 8 of the Notice of Import Customs Clearance for Express Goods, as amended in 2016 to increase the value of the de minimis rule, the de minimis threshold, meaning the minimum value of goods below which customs do not charge duties, is USD 150, which is below the 200 USD threshold recommended by the International Chamber of Commerce (ICC). This threshold applies to goods for personal consumption and samples not exceeding USD 150, with an exception for trade with the U.S. and Puerto Rico, where the threshold is USD 200 as per the Korea-US FTA, allowing these goods to be exempt from taxes and duties collected by customs.
Coverage Horizontal
Sources
- https://www.law.go.kr/LSW//admRulLsInfoP.do?chrClsCd=&admRulSeq=2100000195023
- https://www.customs.go.kr/kcs/cm/cntnts/cntntsView.do?mi=2821&cntntsId=819
- https://www.law.go.kr/LSW//admRulInfoP.do?admRulSeq=67682
- https://global-express.org/assets/files/GEA%20De%20Minimis%20Country%20information_4%20November%202021.pdf
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KOREA
N/A
Pillar Online sales and transactions |
Sub-pillar Restrictions on domain names
Domain Name Management Rules
According to Art. 4 of the Domain Name Management Rules set forth by the Korea Internet & Security Agency (KISA), domain name registrants must have a postal address of their place of residence in Korea. In addition, it is reported that a Copy of Company registration in Korea with proof of company address in both English and Korean languages is required for registration and that a Korean-based administrative contact is mandatory.
Coverage Horizontal
KOREA
Since September 2018
Pillar Online sales and transactions |
Sub-pillar Local presence requirements for digital services providers
Act on Promotion of Information and Communications Network Utilization and Information Protection etc (정보통신망 이용촉진 및 정보보호 등에 관한 법률)
According to Art. 32 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, foreign IT service providers without an office in Korea are required to appoint a local agent responsible for ensuring compliance with data privacy regulations.
Coverage IT services
KOREA
Since March 2002, last amended in June 2012
Since December 1992, last amended in December 2021
Since January 1990, last amended in December 2022
Since December 1992, last amended in December 2021
Since January 1990, last amended in December 2022
Pillar Online sales and transactions |
Sub-pillar Framework for consumer protection applicable to online commerce
Act on the Consumer Protection in Electronic Commerce Transactions etc. - Act No. 10303 (전자상거래 등에서의 소비자보호에 관한 법률)
Regulation of Terms and Conditions Act (계정된 약관의 규제에 관한 법률)
Fair Trade Act (공정거래법)
Regulation of Terms and Conditions Act (계정된 약관의 규제에 관한 법률)
Fair Trade Act (공정거래법)
The Act on Consumer Protection in Electronic Commerce Transactions provides a comprehensive framework for consumer protection that also applies to online transactions. In addition, it is reported that for business-to-business transactions, the Regulation of Terms and Conditions Act and the Fair Trade Act are the main frameworks applied.
Coverage Horizontal
Sources
- https://www.law.go.kr/LSW/lsInfoP.do?lsiSeq=225097&ancYd=20201229&ancNo=17799&efYd=20211230&nwJoYnInfo=N&efGubun=Y&chrClsCd=010202&ancYnChk=0#0000
- https://www.law.go.kr/LSW//lsInfoP.do?lsiSeq=225063&ancYd=20201229&ancNo=17799&efYd=20211230&nwJoYnInfo=N&efGubun=Y&chrClsCd=010202&ancYnChk=0#0000
- https://www.law.go.kr/LSW//lsInfoP.do?lsiSeq=224973&ancYd=20201229&ancNo=17799&efYd=20221230&nwJoYnInfo=N&efGubun=Y&chrClsCd=010202&ancYnChk=0#0000
- https://unctad.org/page/cyberlaw-tracker-country-detail?country=kr
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KOREA
N/A
Pillar Online sales and transactions |
Sub-pillar Ratification of the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts
Lack of ratification of the UN Convention on the Use of Electronic Communications in International Contracts
Korea has signed but not ratified the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.
Coverage Horizontal
KOREA
Since 1999
Pillar Online sales and transactions |
Sub-pillar Adoption of United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce
UNCITRAL Model Law on Electronic Commerce
Korea has adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce.
Coverage Horizontal
KOREA
N/A
Pillar Online sales and transactions |
Sub-pillar Adoption of United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures
Lack of adoption of UNCITRAL Model Law on Electronic Signatures
Korea has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures.
Coverage Horizontal
KOREA
Since November 1987, as amended in December 2009, last amended in December 2021
Pillar Content access |
Sub-pillar Licensing schemes for digital services and applications
Act on the Promotion of Newspapers, Etc. (신문 등의 진흥에 관한 법률)
Under Art. 13 of the Act on the Promotion of Newspapers, a person who is not a national of Korea shall not be qualified as a publisher or editor of an online newspaper or as a news article layout manager of an online news service. This requirement has been in place since 2009.
Coverage Online newspapers
KOREA
Since January 2005
Pillar Content access |
Sub-pillar Licensing schemes for digital services and applications
Act on the Protection, Use, etc. of Location Information (Act No. 7372 of 27 January 2005) (위치정보의보호및이용등에관한법률)
Per Art. 5 of the Location Information Use and Protection Act, any person who intends to engage in location information business shall obtain permission from the Korea Communications Commission. According to Art. 18 of the Act, even if permitted to do such business, location information providers or location-based service providers cannot collect location information of individuals without individuals' consent. It is reported that, although a supplier may export location information once acquiring a permit, Korea has never approved such a permit despite numerous applications by foreign suppliers over the past decade.
Coverage Location-based services
Sources
- https://www.law.go.kr/%EB%B2%95%EB%A0%B9/%EC%9C%84%EC%B9%98%EC%A0%95%EB%B3%B4%EC%9D%98%EB%B3%B4%ED%98%B8%EB%B0%8F%EC%9D%B4%EC%9A%A9%EB%93%B1%EC%97%90%EA%B4%80%ED%95%9C%EB%B2%95%EB%A5%A0
- https://elaw.klri.re.kr/eng_service/lawView.do?hseq=43349&lang=ENG
- https://web.archive.org/web/20240407155542/https://ustr.gov/sites/default/files/2020_National_Trade_Estimate_Report.pdf
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KOREA
Since December 1986, as amended in December 2008, last amended in June 2022
Pillar Quantitative trade restrictions for ICT goods and online services |
Sub-pillar Export restrictions on ICT goods or online services
Foreign Trade Act (대외무역법)
Since 2008, the Foreign Trade Act has required a license prior to the export of strategic goods. These items include dual-use items. Among them, electronics (category 3), computers (category 4), telecommunications and information security (category 5), and sensors and lasers (category 6) are relevant to digital goods. These categories are controlled by the Ministry of Trade, Investment, and Energy.
Coverage Strategic goods
KOREA
Reported in 2022
Pillar Quantitative trade restrictions for ICT goods and online services |
Sub-pillar Export restrictions on ICT goods or online services
Export ban on strategic goods
On 28 February 2022, the South Korean Ministry of Economy and Finance (MOEF) introduced export bans on "strategic goods" to Russia. These strategic goods are classified into two categories: "dual-use" and "military use." Among the dual-use items are ICT goods such as machines and apparatus primarily used for the manufacture of semiconductor boules or wafers, semiconductor devices, and electronic integrated circuits. Other items included in the ban are telephone sets, including those for cellular networks or other wireless networks, among others.
Coverage Strategic goods
KOREA
N/A
Pillar Technical standards applied to ICT goods and online services |
Sub-pillar Self-certification for product safety
Electrical Appliances Safety Control Act (전기용품 및 생활용품 안전관리법)
The Electrical Appliances Safety Control Act authorises the Korean Agency for Technology and Standards to develop safety certification schemes for the import of electronic appliances. The agency has created three certification schemes: KC Safety Certification, KC Safety Confirmation, and SDoC.
The requirements are the following:
- Type 1 products must go through a certification procedure that includes factory inspection (initial and regular) with mandatory product testing every two years in order to get KC Certification. Type 1 products include electric wire, cords, switches for electrical appliances, motor-oriented electric tools, breakers, insulated transformers, and lighting appliances;
- Type 2 products, which are considered less dangerous, must overcome certification procedures that include safety testing without factory inspection. Type 2 products include electric switches, electric appliances, audio and video electronic apparatus, lighting appliances, insulated transformers, and information technology equipment;
- Type 3 products are qualified to be clear of mandatory certification procedures with a showing of SDoC. Except for products that qualify for SDoC, the other two methods, which include local testing, could be burdensome. Type 3 products include fluorescent lamp starters, DC power supplies, and electric chargers connected to the electric appliances, as well as some electric appliances, audio and video electronic apparatus, and information technology equipment.
The requirements are the following:
- Type 1 products must go through a certification procedure that includes factory inspection (initial and regular) with mandatory product testing every two years in order to get KC Certification. Type 1 products include electric wire, cords, switches for electrical appliances, motor-oriented electric tools, breakers, insulated transformers, and lighting appliances;
- Type 2 products, which are considered less dangerous, must overcome certification procedures that include safety testing without factory inspection. Type 2 products include electric switches, electric appliances, audio and video electronic apparatus, lighting appliances, insulated transformers, and information technology equipment;
- Type 3 products are qualified to be clear of mandatory certification procedures with a showing of SDoC. Except for products that qualify for SDoC, the other two methods, which include local testing, could be burdensome. Type 3 products include fluorescent lamp starters, DC power supplies, and electric chargers connected to the electric appliances, as well as some electric appliances, audio and video electronic apparatus, and information technology equipment.
Coverage Electrical appliances
Sources
- https://web.archive.org/web/20221130003017/https://www.kats.go.kr/content.do?cmsid=44
- https://web.archive.org/web/20241213214311/https://www.law.go.kr/lsInfoP.do?lsiSeq=200901&urlMode=engLsInfoR&viewCls=engLsInfoR#0000
- https://web.archive.org/web/20241213214412/https://elaw.klri.re.kr/kor_mobile/viewer.do?hseq=45624&type=sogan&key=13
- https://web.archive.org/web/20201130011413/https://www.gma.trade/single-post/2019/05/09/south-korea-market-access-for-electrical-and-rtt-products
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